Car Insurance Explained What to Do After a Car Accident

Hey, let's talk car insurance. Part one, what is car insurance? Well, I'll tell you. Car insurance protects you from a huge financial loss. Basically, you pay a premium monthly, usually, to your insurance company, and in exchange, if you get into a wreck, the insurance company will help you cover your losses. Car insurance includes three different types of coverage. Number one, property, which will pay if your car is stolen or damaged. Two, liability, which pays for legal obligations to others for bodily injury or property damage. And number three, medical, which pays for hospital bills, rehabilitation, and sometimes lost wages or funeral expenses. Part two, money matters. So how much coverage should you get? Well, that depends on different things, such as your car's value, whether you own the car outright, and how much in damages you could afford to cover out of pocket on your own. Naturally, your monthly premium will vary depending on your amount of coverage. Like, for instance, it costs more to insure the Ectomobile than it does to, say, cover Mr. Bean's little mustard yellow car. That's the way of the world, kid. And don't you forget it. Very important note, just because you pay premiums, that doesn't mean you'll pay nothing when you get into a wreck. Most likely, you'll have something called a deductible. The deductible is the amount of money that you have to pay before your insurance starts kicking in. So let's say you total your $5,000 car in a wreck, and your deductible is $1,000. That means that you are going to pay the first $1,000 to get your car replaced, and your insurance will pay the remaining $4,000. In the good old US of A, nearly all states require that you have car insurance if you're going to own or drive a car, so it's super important to get it. Also, the remaining states still require that you prove that you could afford to cover all damages if you get into a wreck. So basically, for the privilege of not paying a monthly premium on insurance, you're gambling potentially hundreds of thousands of dollars, if not more. So we would say, crowd, get insured. Applause, applause, applause, applause. Part three, how to get insured. This is actually really simple. You can get quotes online or over the phone very quickly from dozens of competitors. The insurance company will need a bit of information about you and your car. They'll also likely run a credit report and look up your accident history. Once you get a quote you like, you'll start paying premiums, and they will send you your insurance card, which you should keep with your car at all times. How come, Mike? I'll tell you how come. Because... Part four, that colossal wreck. Boundless and bare. P.S., the first person to tell me what that quote is from in the comments is officially an awesome adult. Step one, post accident if you can, get your car and yourself off of the road and into someplace safe. If you cannot move your car, leave it there, but make sure you get out of the dangerous situation. Your insurance company will pay to get a tow truck to take your car away. Either way, though, put on your hazards. If you have any of those reflectorized triangles, be sure to put those out. If you have one of those road flares, careful, because they'll burn you. They're not just like fun with... They're not a glow stick, for crying out loud. Who learned his lesson the hard way? This guy. A lot of raves in the 90s. None of this was true. Next angle. Step 1.5, this might be slightly uncomfortable, but do not offer any apologies or explanations for what caused the wreck. They could be used against you in future legal proceedings. Step two, should you call the police? We recommend that you do. Admittedly, it is not illegal to not call the police, but to quote U.S. News and World Report, even if no one is hurt, if there's real damage and insurance companies will soon do battle, it's a good idea to call 911. That's the recommendation from the federal government's website, 911.gov, which recommends calling after a car crash, especially if someone is injured. If you call 911 or your local precinct and bring in a neutral third party to document the accident, you'll be doing yourself a favor. It's true that it might take a little while for the police to get there if you live in a big city or they're just like super busy that day, but still, we recommend erring on the side of caution and calling them, and either way, you're going to have to file an accident report to the police. More info in the doobly-doo. Step three, gather the other driver's information and volunteer your own. You should write down these things, and if you've called the police, you should get their phone number, their badge number, their name, the number of the police report, and request a copy of the police report. Having all of this info will save you a lot of headaches. In step four, file a claim. After the scene is cleared, call your insurance company immediately to start the claims process. Your insurance card should have a 24-hour phone number on the back of it, and your insurance agent should call you within one business day to help you with the claim. Your insurance agent should also be able to help you basically every step of the way throughout the process. After an accident that you are deemed responsible for, it's possible that your premiums are going to go up. That's because the insurance company sees you as a riskier investment. However, this is not for certain, because a lot of different companies have different policies on rate increases, so just know that it might vary. For a lot of people, driving is a big part of adulthood, and it is a huge responsibility. Basically, you're piloting a two-ton missile. So, drive sober, put down your phone, and maintain legal speed limits. That way, you'll be avoiding the three most common causes of accidents. I speak for everyone here at HowToAdult when I say you guys are awesome, so please be safe. Please be safe. I love you. Bye.